US gov’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC

[ImThour]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC
Article: https://cointelegraph.com/news/silk-road-118m-bitcoin-auction-shouldnt-cause-concern-gbtc-dump
Author: JESSE COGHLAN

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

[moneystery]

2.9k bitcoins is not a small amount of bitcoins, it is worth quite a lot, but when compared to the global valuation of bitcoins this amount is not that big. because if we look at how some time ago tesla sold their 4k bitcoins, it really caused the market to panic a little, but it didn't last long and finally the market gradually recovered. so there is nothing to worry about from this sale.

and i think the us government will not just sell all the bitcoins, they will also think about the economic impact of the sale. maybe they will sell in stages or sell directly to trusted buyers such as companies or other parties who are ready to accommodate that much bitcoin, so it won't affect the price of bitcoin that much.

[Fiatless]

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The sale is insignificant compared to the $579 million that has been disposed of Grayscale Bitcoin ETF since the approval of the ETF. The impact of the dump by Grayscale was slightly felt with the price of Bitcoin dropping significantly. But we have seen some signs of recovery with the price moving to $41k. I doubt if the proposed sale by the US government of about 2,934 BTC ($118 million) of Silk Road Bitcoin would have much impact. Even if there is any effect, the price will still recover within a few days. Thus I totally agree with Steven Lubka that this auction is peanut and I think this news shouldn't give rise to FUD.    

[Husires]

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

[stompix]

The sale is insignificant compared to the $579 million that has been disposed of Grayscale Bitcoin ETF since the approval of the ETF. The impact of the dump by Grayscale was slightly felt with the price of Bitcoin dropping significantly.

The outflow from Grayscale doesn't mean people sold their cash for coins and just went spending fiat never looking back, also this scenario would ignore the inflow from other ETF which would have tuned the balance positive for the first week, the total balance has dropped just in the last few days.

Also, the sum is closer to 2.5 billion if we consider only Grayscale

revealed that Grayscale’s ETF has lost more than 95,600 BTC since January 11, when it went live on national securities exchanges

[SamReomo]

It's $118M worth of Bitcoin and surely it will impact the market to some extent and Bitcoin's price may drops during the sale. It's impact will not be significant as compare to the Gray Scale but it will surely cause some fear in the minds of the investors.

I think US government is taking some smart decisions to sell off their Bitcoin holdings and they may continue selling their Bitcoin holdings in small quantities during this bull run. I hope that the decisions that they take may not impact Bitcoin and its value in a inverse way.

Although, they can sell off the seized coins within days but they don't really want to dump the market as that won't be a good decision by them. If the market gets a huge dump then they will sell their Bitcoin at loss and that's why they won't do that.

[Franctoshi]

Even though that the amount to be sold isn't that much compared to what Grayscale has sold off, I still feel that the market will definitely react to it, except if the sales occur in batches but no one knows which method that the US government is going to use to liquidate this number of Bitcoin (2.9k) worth $118M Bitcoin but should they sell at once, this will in the short term may put pressure on the price of Bitcoin to see new lows from the last price 38.5k we just bounced from maybe push down the price towards $31k, but the sell will immediately be absorbed by the Bulls immediately we tap into that support.

[thecodebear]

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

That's not true at all. Much of the $2+ billion of bitcoin has been sold by Grayscale was not moved backed into other ETFs. I'm sure some of it was, but most of it wasn't. FTX alone accounted for over a billion dollars of the Grayscale exodus, and none of that was moved back into ETFs, and no doubt of the other billion of so of the Grayscale dump some of it also wasn't simply moved back into other ETFs. So yeah, the amount that the US govt is planning to sell is less than 10% of the net bitcoin selling from Grayscale recently.

[bluebit25]

(...)So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The description is full of truth but it will still cause a certain effect, although I and many people expected that the event before the halving would cause a manipulation of the price of bitcoin but was not sure about the news would be big enough to shake off those who are playing short-term with the mentality of finding short-term profits. Anyway, this is just a small piece of news but is being hyped as a serious matter. The calculation has shown the whole scale without the need to panic, even though I am not a long/short person in the market but I know it is also an opportunity/risk for those who participate.

[348Judah]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC
Article: https://cointelegraph.com/news/silk-road-118m-bitcoin-auction-shouldnt-cause-concern-gbtc-dump
Author: JESSE COGHLAN

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

The proposed amount they are planning to sell is not small either, we have known the Grayscale Bitcoin as a giant holder over the years, we may have to advise more on the US government to learn more from them when they are into this, though I don't see this causing a significant difference in the market price, just as there will always be time for everything, this is what they think they are upto now and they have their own reasons for that, but ordinarily, we may like to question on that why now when it is not halving yet before they are selling.

[BlackBoss_]

US govt’s planned $118M Bitcoin sale is ‘peanuts’ compared to GBTC

The planned sale of over 2,900 Bitcoin is small compared to the outflows from Grayscale’s ETF, one market commentator noted.

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

Not only Grayscale but also with appearances of Bitcoin Spot ETFs, Bitcoin market is receiving bigger capital from institutional investors and I believe it will continue to increase so that the market can absorb those 'peanut' bitcoin from US. government well.

Bitcoin Spot ETFs already bought more than 100,000 BTC and this sell wave from US. government will only 2,900 bitcoin.

[Maus0728]

I know he wants to sound quirky but that's the right thing for US to do, bitcoin and the US SEC don't see eye to eye yet even though they're doing this purchase right now. They're testing the waters for the nth time, give the US the time they need to ease in lol.

[thecodebear]

2900 Bitcoin is like one day of buying for the ETFs alone. So its really not much at all.

[DapanasFruit]

Well, of course this $118 million worth of Bitcoin is nothing and I would say will not be making any dint in the overall market's direction plus this sale is to be made via bidding and will not be sold in any exchange...so essentially this would be just a change of ownership unless of course the new owner would deliver his BTC to Coinbase for example then it can have a limited impact. Maybe it is really time for the USA government to slowly get rid of the BTC it accumulated from Silkroad as it does not have any business in this arena.

[DanWalker]

Even though that the amount to be sold isn't that much compared to what Grayscale has sold off, I still feel that the market will definitely react to it, except if the sales occur in batches but no one knows which method that the US government is going to use to liquidate this number of Bitcoin (2.9k) worth $118M Bitcoin but should they sell at once, this will in the short term may put pressure on the price of Bitcoin to see new lows from the last price 38.5k we just bounced from maybe push down the price towards $31k, but the sell will immediately be absorbed by the Bulls immediately we tap into that support.

As Husires said above, the total trading volume of bitcoin in 24 hours is 531,375 BTC and with only 2k9BTC sold, are you very concerned that bitcoin will drop to $38k or even $31k? You are underestimating this market and overestimating the US government.
In the past 10 days since the ETFs were approved, Grayscale and FTX have taken turns selling billions of dollars worth of bitcoin to the market, but that only caused bitcoin to drop to $38k. Meanwhile, the US government holds just over $118 million worth of bitcoin, which is unlikely to cause more selling pressure than Grayscale has done in recent days.

Personally, I think there will be no impact on the market and no one cares about this.

[adaseb]

Most likely these coins will be auctioned off like in the past. They won’t be sold on the open market. The way it works you can tell how much demand there will be based on the bids that are placed.

I remember back in 2014 or 2015 there was tons of bids for those bitcoins and they payed well over market for them, which indicated that we were in a strong bull market.

[Ale88]

So US government is going to sell 2.9k Bitcoin soon and according to Steven Lubka, managing director at Bitcoin exchange Swan Bitcoin, the sale would be “peanuts” compared to the outflows from the Grayscale Bitcoin Trust over the last week.

I feel like this is not even supposed to be a news. That tweet is perfectly right, the market is holding very well despite Grayscale have been dumping a ton of bitcoins during these days, why should we even worry about a few extra thousands of bitcoin being sold? I can't even called it FUD, it's just very irrelevant.

[Husires]

That's not true at all. Much of the $2+ billion of bitcoin has been sold by Grayscale was not moved backed into other ETFs. I'm sure some of it was, but most of it wasn't.

Was it sold? I did not know that FTX had money in Grayscale. Will the bankruptcy procedure allow selling it?

Most likely these coins will be auctioned off like in the past. They won’t be sold on the open market. The way it works you can tell how much demand there will be based on the bids that are placed.

The sale in auctions takes place outside the market and at prices that are determined in the auction, so it will not affect the price of Bitcoin, especially since we all know that there is an opportunity for the price of Bitcoin to rise during the coming year. Whoever will buy this Bitcoin from the auction will definitely not sell it now, but it will be a reason for dumping the price from ATH in 2025.

[kryptqnick]

If Grayscale actually sold as much BTC recently, I think it's a very interesting case for us. Grayscale has been selling over January, and the article says that more than $4 billion worth of coins have been sold since January 11. The price dropped from $48k to less than $39k over the course of almost two weeks, so almost by 20%. But it's already around $42k, so around it's currently down by around 13% from the pre-sale price. That's the kind of power a strong organization and billions of dollars currently have on the price. Somewhat significant, but also very temporary. I do agree that $118 million worth of coins is nothing compared to this.

[DaveF]

It's like saying the US governments sale of 5 UH60L Black Hawk helicopters is going to matter to the world wide sale of helicopters.
FYI:
https://www.gsaauctions.gov/auctions/preview/269494
https://www.gsaauctions.gov/auctions/preview/269498
https://www.gsaauctions.gov/auctions/preview/269495
https://www.gsaauctions.gov/auctions/preview/269496
https://www.gsaauctions.gov/auctions/preview/269497

We only care here because it's BTC
There are plenty of people / institutions out there with more BTC that can sell it tomorrow without telling anyone.

-Dave

[batang_bitcoin]

Technically, it's a lot of money but comparing it to the institutions, it's definitely peanuts. If we see the impact of it, there could be a slight move but compared to what the institutions sell-offs and buy orders. There is no doubt that they've got that much. And if the seized one are going to be sold, it is for sure that many would come to take it as it's like cleaned already by the government as it's obviously because it came from them. WHat matters there is the amount of Bitcoin that will be put up on sale.

[PrivacyG]

Well.  Bad timing I guess.  I wish there was a RemindMe bot so I could check out how much the Government has missed on by deciding to sell Bitcoin before yet another presumed historical Bull Run.

Or is there any time limit now that they pushed the notification of the sell?

[Ever-young]

Well.  Bad timing I guess.  I wish there was a RemindMe bot so I could check out how much the Government has missed on by deciding to sell Bitcoin before yet another presumed historical Bull Run.

Or is there any time limit now that they pushed the notification of the sell?

They always sell when they think the time is right for them as I believe their are lot of paper work to be done in other for the BTC which they abstain and hold by seizure to be sold out, but one thing about this their selling is that it always bring about market change negatively main newbie traders usually sell off during this time as the market drop about there sales which take a bit of time days or weeks to recover, which I don’t think this sale might have such impact as they are not selling bitcoin worth up to billion dollars.

[avp2306]

Well.  Bad timing I guess.  I wish there was a RemindMe bot so I could check out how much the Government has missed on by deciding to sell Bitcoin before yet another presumed historical Bull Run.

Or is there any time limit now that they pushed the notification of the sell?

They don't care about the bull run nor even know theirs something event like this exist in crypto. So expect that they would really dump whatever they can since what these people think is the money they can get from their sales coming from bitcoin. I guess if this happen we can expect the market to dump and indeed this is a bad timing knowing that many people speculate that there will be a huge bull run will came this year and here comes those recent negative news also this planned dumping of US government create scare of those people who think about accumulating bitcoin.

But lets still see their next action if they do it on bulk or they split up their planned sale so it can't move the market so bad. For sure there are upcoming fuds to come using this news and we need to prepared on those events.

[blckhawk]

In fact, the outflows from Grayscale's ETF are not sell orders, but rather a transfer of ownership from them to BlackRock. It is just like transferring Bitcoin from your old wallet to a new wallet, so selling 2900 will be more effective than Grayscale's ETF outflows because it is not a sell, but 2900 compared to Volume (24h) 531,375 BTC is not a big problem.

Sure it's effective but they're still hodling bitcoins and they're getting the best value out of it right because they've still got their bitcoins because it's just a transfer right? They're really making the most out of all this ETF while it's still this early in the approval and implementation of ETF. Good thing that US is also jumping right in despite the provocation that it's a small amount compared to what the long timers deal with daily.

[Natsuu]

2.9k bitcoins is not a small amount of bitcoins, it is worth quite a lot, but when compared to the global valuation of bitcoins this amount is not that big. because if we look at how some time ago tesla sold their 4k bitcoins, it really caused the market to panic a little, but it didn't last long and finally the market gradually recovered. so there is nothing to worry about from this sale.

and i think the us government will not just sell all the bitcoins, they will also think about the economic impact of the sale. maybe they will sell in stages or sell directly to trusted buyers such as companies or other parties who are ready to accommodate that much bitcoin, so it won't affect the price of bitcoin that much.

Exactly. Selling 2.9k bitcoins is a big deal but when you look at the overall bitcoin scene, it's not huge. The US government might play it smart, selling gradually or to trusted buyers to avoid major price swings. Gotta keep an eye on how they handle it

[buwaytress]

Yeah. Even with all the indefinite amounts dumped supposedly from seized coins or from Mt Gox recoveries didn't dent markets. These weren't even at today's prices.

Those are, really, breakfast amounts. Business as usual. Why we getting so excited?

[el kaka22]

I am not sure if the GBTC part is true or not, but I know that 130 million is nothing for bitcoin. Anyone who looks at the market will see how much money is traded everyday, so it is not really a shocker that one time 118 million or 130 million type of sale doesn't really matter.

So all in all, gbtc or silk road, it really doesn't matter because in the end we are talking about a situation that means we could make some money from it, and that has to be the most important part of it. I get that it is not going to be all that easy, and we should probably see something a little different, but as long as it doesn't feel that way, we shouldn't really be expecting anything that would be crazy, all these sales means nothing at all to us.

[BenCodie]

2900 Bitcoin is like one day of buying for the ETFs alone. So its really not much at all.

Exactly. These kind of figured are nothing to be too concerned about, in fact, it's better it is happening now than later. More supply distribution at highest is good for BTC

Yeah. Even with all the indefinite amounts dumped supposedly from seized coins or from Mt Gox recoveries didn't dent markets. These weren't even at today's prices.

Those are, really, breakfast amounts. Business as usual. Why we getting so excited?

No one should be getting excited...however those who are, are clearly unaware of the liquidity behind Bitcoin and cryptocurrency at this point in time.

As for Mt. Gox...That is still an event worth keeping an eye on. I have seen news about people getting emails to confirm their repayment address however that does not mean the coins have been distributed yet.

The difference in the Mt. Gox situation is that it is a large amount of retail investors, and no one knows whether or not they will sell, or what will happen to unclaimed coins...Lot's of question marks yet to be answered there.

[Myleschetty]

We are talking about the US government's 2.9K Bitcoin sold on the mentioned exchange to be peanut compared to GrayScale outflow, yes it is but we seem to forget that huge BTC will be sold by 3 organizations that's the US government, Mt Gox payout, and GrayScale.
These 3 organizations are the ones causing the current market dump in price.

[jrrsparkles]

Government often sale or auction the seized assets from many sources and it's not big amount to disturb the market trend of Bitcoin and to be honest we don't even need to consider this small amount can do any harm to the bitcoin's value.

[umbara ardian]

$118 million worth, enough to raise some eyebrows in the crypto world. Sure, it's not gonna cause a Bitcoin apocalypse, but it'll definitely send some shivers down the spines of investors.  Let's chill and break it down. Sure, any big sell-off can send shivers down the spine of investors, and this might cause a temporary dip. But remember, this ain't a Gray Scale-sized earthquake. We're talking a drop in the ocean compared to Bitcoin's whole market cap. Think of it as a pebble, not a boulder.

Now, the government's timing is kinda interesting. Selling during a bull run seems odd, right? But here's the thing: if they wait for a bear market, they risk selling low. So, small, strategic releases are their way of maximizing profits without crashing the party. It's a tricky balancing act, but hey, gotta give them credit for trying. And let's not forget, everyone loses if the market tanks. The government ain't immune to that. So, they're probably aiming for a slow and steady sell-off, avoiding a self-inflicted wound.

But this sale is just one piece of the puzzle. It makes us wonder: is this a one-time thing, or the start of a trend? Will other governments follow suit? These are questions with no easy answers, and the crypto world is waiting with bated breath.

[DaveF]

Well.  Bad timing I guess.  I wish there was a RemindMe bot so I could check out how much the Government has missed on by deciding to sell Bitcoin before yet another presumed historical Bull Run.

Or is there any time limit now that they pushed the notification of the sell?

It's the government, they don't operate like that.
When they have property to dispose of, no matter what it is, it is sold / auctioned on a known schedule. They don't pick and choose the best time to do it.

It's just the way it is, and it's probably for the best. If they wanted to sell at the next BTC bull run or sell property at the next real estate ATH and it didn't happen but instead the prices went down for whatever reason it's going to be worse.

-Dave